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What is penny stock?
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[QUOTE="Lens1000, post: 295613, member: 37726"] Penny stocks are stocks that are issued by companies that their fnancial stability are not guaranteed and they are often emerging companies. The penny stock are traded less than $5 in the floor of the stock exchange market per shares. It is totally different from the blue-chip stock whose risk is very low. In penny stock, the risk that is involved is extremely high and it is a stock that is meant for those who are read to take high level of risk. It is issued by companies that is just emerging and that you rarely know about. The penny stock are dubbed to be a speculative instruments. The penny slot is risky than blue chip stock, mid-cap stock and small-cap stock because the company's financial stability is not yet known and it is an emerging company. The blue chip stock are issued by company whose financial stability is well-established and grounded . Buying such stock would take a little risk and they are blue chip stock, mid-cap stock and small-cap stock. Because the risk that is involved in penny stock is very high and they are often bought by the investors who can take some certain level of risk . [/QUOTE]
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